At a Decision Point in a Decision Tree, Which Machine

question 19

Multiple Choice

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?

• A) Machine A
• B) Machine B
• C) Machine C
• D) You would be indifferent between machines A and C.
• E) You would be indifferent between machines A and B.

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Definitions:

Regulatory Compliance Management

The ongoing process of monitoring and evaluating compliance with relevant laws, regulations, and industry standards.

Customer Relationship Management

A strategy and software used by businesses to manage and improve interactions and relationships with customers.

E-commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.

B1C E-commerce

Business-to-Consumer electronic commerce, a model in which businesses sell goods, services, or information directly to consumers online.